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Tough times for big travel agencies open niche markets for entrepreneurs

By RHONDA ABRAMSGannett

Published: Thursday, January 31, 2013 at 3:11 p.m.

Last Modified: Thursday, January 31, 2013 at 3:11 p.m.

If you want to start your own small business and have a desire to see the world, consider the many opportunities for entrepreneurs in the travel industry.

If you think the Internet destroyed all small travel agencies and travel-related small businesses, well, think again.

Recently, I was invited on a flight with leaders in the travel industry and had a chance to explore new prospects for travel entrepreneurs with some of the best thinkers in the field. British Airways operates a 32-seat, all-business-class flight between London City Airport and New York City, perfect for business travelers.

CBS Travel Editor Peter Greenberg was taping his radio show during the flight, and I was to be interviewed about small-business travel for his Feb. 2 program. (You can hear it at www.PeterGreenberg.com.)

At almost 9 percent of America’s total gross domestic product, generating more than a trillion dollars a year, travel and tourism represent a big chunk of the overall economy. And small businesses get a share of that.

“A lot of young people are bringing exciting new approaches,” said Arnie Weissmann, senior vice president and editor-in-chief of Travel Weekly. “People predicted that travel agencies would disappear, but they’re still here. In 1995, there were 36,000 agencies; there are 14,000 today.”

Travel agents still number almost 83,000, according to the federal Bureau of Labor Statistics. And the travel industry added 81,000 new jobs in 2012, according to the U.S. Travel Association.

In spite of news in mid-January that American Express will cut 5,400 jobs, mostly in its travel-services unit, opportunities for entrepreneurs exist.

“You won’t see necessarily see the travel agency in a strip mall or on Main Street,” Weissmann said. “Many of today’s new travel agencies are home based. They seem invisible. But they’ve reduced their overhead and lowered the bar for entry into the field.”

Two segments of travel agencies are doing particularly well: luxury/upscale travel and niche travel, he said.

“Any area in which a geographic location intersects with a special interest, there’s an opportunity,” Weissmann said. For instance, you could specialize in tango trips to South America, horseback riding trips to Ireland, culinary trips to Italy.

“Start with what you know and love. If you run marathons, organize trips around marathons,” he said. And go the extra mile to stand out. Weissman cites a personal trainer who organized wellness trips, including a Maasai Warrior Boot Camp in Kenya, providing pre-trip and post-trip regimens to participants.

Greenberg’s advice to entrepreneurs wanting to get into the travel business reflected the same sentiment: “We live in a world of specialization. You have to have value added. You need to offer something no one else has.”

And you have to change with the times.

“It’s not your grandfather’s travel agency anymore,” Weissmann said. “You can’t just be an order taker. You have to provide a service. If you provide a substantial service, you can collect fees from travelers as well as commissions.”

If Weissmann were starting a travel agency today, “I would build in lots of surprises that makes customers say, ‘Wow!’ For instance, a man wanted to give his wife a special 50th birthday trip, and she was enamored with Italy. His travel agent not only planned a romantic tour but hired young men to whistle at the wife in Italy.”

Be entrepreneurial in your approach to a travel-related business.

Weissmann suggests independent travel agents or small agencies distinguish themselves by being able to provide services for all a traveler’s needs.

“Find places to board their pets,” he said. “Make sure there’s fresh milk in their refrigerator when they return. Collect their mail. Do everything associated with the trip — for a fee, of course.”

Greenberg was similarly upbeat about the possibilities for those seeking to create travel businesses or pursue travel careers.

“There’s lots of disruption in the travel industry,” he said. “Interestingly, Internet travel sites are hiring more people to actually go out and talk to customers. It’s ‘back to the future’ in the sense of people talking face to face, not online. As much as we embrace high tech (in the travel industry), we also need to embrace high touch.

“I’m a big fan of the Internet for information, but I make deals in person,” Greenberg said.

If you can come up with a unique concept, tour operators are out there to help make your concept work.

“The travel industry is dying to help you succeed,” Weissmann said.

Rhonda Abrams is president of The Planning Shop and publisher of books for entrepreneurs. Her most recent book is “Entrepreneurship: A Real-World Approach.” Register for Rhonda’s free newsletter at PlanningShop.com. Twitter: @RhondaAbrams. Facebook: facebook.com/RhondaAbramsSmallBusiness.

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